[Business Name] Business Plan Report: Financial Projections

This business plan report provides a comprehensive financial analysis for a business, covering key objectives, assumptions, and startup costs. It includes detailed balance sheet forecasts, profit and loss projections, and expected cash flow analysis. The report also features a break-even analysis to assess financial viability. The document outlines the business's objectives, market analysis, and operational strategies. Financial projections include revenue, contribution margins, and fixed costs. The report uses figures and tables to present the data, along with a bibliography of references used in the analysis. This business plan aims to guide the business towards sustainable growth, focusing on inventory turnover, net profit targets, and market cost control.

Running head: ACCOUNTING
Accounting
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING
Table of Contents
The Finance................................................................................................................................2
Key objectives and Financial Review:.......................................................................................2
Assumptions:..............................................................................................................................2
Start Up cost:..............................................................................................................................3
Balance Sheet Forecast:.............................................................................................................5
Expected Cash Flow:..................................................................................................................6
Break-Even Analysis:.................................................................................................................7
Bibliography:..............................................................................................................................8

2ACCOUNTING
The Finance
Key objectives and Financial Review:
The basic objective of the business is to finance the growth largely with the help of
cash flow. The most vital indicator in respect to the current business is the inventory
turnover. The business anticipates that the inventory of food stays at the approximately four
turns each month as the business may face the risk of spoilage. The business aims to target a
net profit of 15% and aims to hold the market cost of not greater than three percent of gross
sales.
Assumptions:
The financial plan is largely reliant on the assumptions; majority of the assumptions
are given below;
a. The business assumes that the growth will be slow without any kind of major
economic recession.
b. The company also assume that during the course of business there is no such
unforeseen changes in the technology in order to make the equipment immediately
outdated.
c. The business assumes that the in order to get the access of capital it is necessary to
obtain bank loan for smooth operation of the business functions.

3ACCOUNTING
Start Up cost:

4ACCOUNTING

5ACCOUNTING
Balance Sheet Forecast:
Assets FY-1 FY-2 FY-3
Current Assets
Cash $47,000 $40,250 $10,661
Accounts receivable $3,00,000 $3,45,000 $4,07,100
Total current assets $3,47,000 $3,85,250 $4,17,761
Fixed (Long-Term) Assets
Utensils and Cutlery $35,000 $38,500 $42,350
Computers $28,000 $30,800 $33,880
Refrigerators and Ovens $58,000 $63,800 $70,180
Furnitures & Fixtures $22,000 $24,200 $26,620
(Less accumulated depreciation) $19,300 $18,180 $18,304
Total fixed assets $43,700 $51,120 $57,926
Total Assets $3,90,700 $4,36,370 $4,75,687
Liabilities and Owner's Equity
Current Liabilities
Bank Charges Payable $10,000 $10,000 $10,000
Short-term loans $15,000 $20,000 $30,000
Income taxes payable $6,105 $14,831 $20,316
Accrued salaries and wages $25,000 $27,500 $30,250
Total current liabilities $56,105 $72,331 $90,566
Long-Term Liabilities
Long-term debt $1,00,000 $90,000 $80,000
Less: Loan Repayment $10,000 $10,000
Total long-term liabilities $1,00,000 $80,000 $70,000
Owner's Equity
Owner's investment $2,00,000 $2,00,000 $2,00,000
Net Profits $14,245 $34,605 $47,403
Reserve and Surplus $20,350 $49,435 $67,719
Total owner's equity $2,34,595 $2,84,040 $3,15,121
Total Liabilities and Owner's Equity $3,90,700 $4,36,370 $4,75,687
Balance Sheet

6ACCOUNTING
Expected Cash Flow:
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 3,00,000 3,45,000 4,07,100
Directors loans 1,00,000 1,00,000 1,00,000 1,00,000
Capital Employed 1,00,000 2,00,000 2,00,000 2,00,000
Other cash inflows
TOTAL CASH INFLOW 2,00,000 6,00,000 6,45,000 7,07,100
CASH OUTFLOWS
Payments for materials 1,55,000 1,78,250 2,10,335
operating expenses ( ) 0
Business Insurance 0 12,000 13,200 14,520
Salaries 0 25,000 27,500 30,250
Accountant Fees 0 15,000 16,500 18,150
Payroll Tax 0 3,500 3,850 4,235
Supplier contracts 0 14,000 15,400 16,940
Sales and Marketing 15,000 16,500 18,150
Postage & Telephone 1,750 1,925 2,118
Brouchers 2,600 2,860 3,146
Logo Designs 2,800 3,080 3,388
Interest on loan 10% 10,000 10,000 10,000
General and Admin Expenses 2,100 2,310 2,541
Preliminary expenses 2,800 3,080 3,388
Capital Improvement Cost 18,000 19,800 21,780
Corporation Tax 6,105 14,831 20,316
Loan repayments 10,000 10,000
TOTAL CASH OUTFLOWS 0 2,85,655 3,39,086 3,89,256
Cash flow summary
NET CASHFLOW FOR PERIOD 2,00,000 3,14,345 3,05,915 3,17,844
OPENING CASH BALANCE 0 2,00,000 5,14,345 8,20,260
CLOSING CASH BALANCE 2,00,000 5,14,345 8,20,260 11,38,103

7ACCOUNTING
Break-Even Analysis:
Breakeven Analysis
Breakeven Sales Value = average fixed cost/% contribution
Revenue Contribution Fixed Cost Profit
300000 150000 74202.3 75797.7
345000 172500 74202.3 98297.7
185505.75 92752.875 74202.3 18550.58
222606.9 111303.45 74202.3 37101.15
150000 200000 250000 300000 350000 400000
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
75797.7
98297.7
18550.575
37101.15
74202.3 74202.374202.3 74202.3
150000
172500
92752.875
111303.45 Contribution
Fixed Cost
Profit
Figure 1: Figure explaining break-even Analysis
Source: As Created by Author

8ACCOUNTING
Bibliography:
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
McAdam, M. and Soetanto, D., 2017. Networks and Entrepreneurship. The SAGE Handbook
of Small Business and Entrepreneurship, p.74.
Pratt, J., 2016. Financial accounting in an economic context. John Wiley & Sons.
Schroeder, R.G., Clark, M.W. and Cathey, J.M., 2019. Financial accounting theory and
analysis: text and cases. John Wiley & Sons.